Deal Target Description

Rite Aid (NYSE:RAD) is a retail drugstore chain. It operates about 4,570 stores in 31 states across the US.

Deal Terms

On October 27, 2015, Walgreens Boots Alliance (NASDAQ:WBA) announced that they are buying Rite Aid for $9 per share in cash. The deal will probably close by next October.

Deal Financing

Financing is not a condition of this deal. Rite Aid is working with Citigroup (NYSE:C) and Walgreens is working with UBS (NYSE:UBS).

Deal Conditions

The deal is subject to RAD shareholder approval and HSR clearance. 

Deal Price

The price is within the range of historically comparable transactions.

Conclusion

This is a simple, compelling opportunity to capture a double digit annual return over the course of the next year.